The U.S. Department of Commerce has initiated a series of changed circumstances reviews to examine the potential impact of a major Turkish steel company's rebranding on existing countervailing duty orders. The reviews focus on Borusan Birleşik Boru Fabrikalari, which underwent a name change from Borusan Mannesmann Boru following the termination of its partnership with Salzgitter Mannesmann GmbH in 2023.
The countervailing duty orders under review cover a range of steel products from Turkey, including circular welded carbon steel standard pipe and tube products, welded line pipe, certain oil tubular goods, and large diameter welded pipe. These orders, implemented between 1986 and 2019, aim to address unfair trade practices and protect domestic U.S. steel producers from subsidized foreign competition.
Borusan Boru initiated the review process on January 9, 2024, requesting that the Commerce Department recognize it as the successor-in-interest to BMB. The company seeks to maintain the cash deposit rates currently applicable to BMB for most products and continue its exclusion from the large diameter welded pipe order. Borusan Boru asserts that despite the name change, there were no significant alterations to its operations that would affect its level of subsidization.
In conducting these reviews, the Commerce Department is focusing on three key areas: continuity in ownership, operations, and corporate structure. Preliminary findings indicate that while there were changes in the ownership structure of Borusan Boru's majority shareholder, BMB Holding A.S., these changes do not appear to significantly impact the company's subsidization levels. The inclusion of Borusan Istikbal Ticaret T.A.S. as an owner of BMB Holding A.S., replacing Salzgitter, is not considered a material change in this context.
The Commerce Department also examined Borusan Boru's operations, noting the company's acquisition of U.S.-based Berg Steel's assets during the review period. However, as the Department does not typically consider subsidies received by U.S. companies in these assessments, this acquisition is not expected to affect the outcome of the review.
Regarding corporate and legal structure, Borusan Boru provided evidence demonstrating no significant changes during the review period that could have altered its subsidization levels. This continuity in legal structure supports the preliminary determination that Borusan Boru is indeed the successor-in-interest to BMB.
Based on the preliminary analysis, the Commerce Department has tentatively concluded that Borusan Boru should be entitled to the same countervailing duty cash deposit rates as its predecessor for the relevant steel products. Additionally, the Department is inclined to maintain Borusan Boru's exclusion from the large diameter welded pipe order, as previously granted to BMB.
The Commerce Department has invited interested parties to comment on these preliminary results before making a final determination. This review process highlights the complex interplay between corporate restructuring and international trade regulations, demonstrating the U.S. government's efforts to maintain fair trade practices while adapting to changes in global business structures.
